U.S. Citizenship and Immigration Services (USCIS) Civics Practice Test

The economic system in the United States is primarily characterized as a capitalist economy. In a capitalist economy, the means of production and distribution are largely owned and operated by private individuals and businesses. This system emphasizes free markets, competition, and the protection of property rights, allowing individuals the freedom to pursue their economic interests and make choices based on supply and demand.

While there may be elements of regulation by the government to ensure fairness and prevent monopolies, the overarching structure is one that supports private enterprise and individual investment. This is evident in various aspects of American life, such as the ability of entrepreneurs to start businesses, the presence of stock markets, and minimal government intervention in many sectors.

The option suggesting a socialist economy indicates a system where the government plays a more central role in the economy, typically owning the means of production and aiming for a more equitable distribution of resources. Meanwhile, a mixed economy features elements of both capitalism and socialism, representing a blend of private enterprise and government intervention, but the U.S. leans more toward capitalism with some regulatory oversight.

Lastly, a communist economy is characterized by collective ownership and the absence of private property, which is fundamentally different from the practices and values upheld in the American economic framework. The recognition of the U.S.